UBER MARKETING PLAN

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Transcript of UBER MARKETING PLAN

EXECUTIVE SUMMARYISSUES– The taxi service industry in large cities has been the dominant market leader for decades. This will make it difficult for Uber to position themselves as the more preferred option over traditional taxis.OBJECTIVESUBER MARKETING PLANExecutive Summary– In 2009, Uber launched into the century-old taxi industry and transformed the way consumers viewed private transportationMARKETING STRATEGYMORE FOR LESS.Hannah Clegg, Zack Cobb, Rodney Crimes, Holly Underwood, Sarah Zemenski– By launching the mobile app in 2010, Uber was the catalyst for using technology to change the taxi industry.– Over the last six years, Uber’s substantial growth has led it to reach a total value of $41 billion.EXECUTIVE SUMMARY:CompetitionWith emerging competitors such as Lyft and Sidecar, Uber must maintain a position to stand out from the crowd.S.W.O.TSTRENGTHS. WEAKNESSES. OPPORTUNITIES. THREATSSTRENGTHSWEAKNESSESTechnological AdvantageAffordable transportation optionsLack of relationship with driversOPPORTUNITIESTHREATSAbility to expand to new cities and countriesLow gas pricesHigh employment ratesCopycat competitorsFederal regulations– Uber’s marketing strategy will position itself as the primary transportation service in the minds of businesspeople and Millenials.– The quality of the UberX experience will provide a more personal, on-demand, and efficient approach to the car service industry.– The new action programs will be launched to include the implementation of Uber Kiosks, a revised social media campaign, and a new Refer a Friend program.– Based on the First Year objective, the new Uber budget plans for a 100% increase in profit.– Uber will closely monitor drive and customer satisfaction, brand awareness, and the overall brand image to ensure continued overall growth in the company.– The first year objective is to increase Uber’s overall profit by 100%.

– Their current profit is just over $200 million, which would take their end of year profit to almost half a billion dollars.YEAR ONEYEAR TWOIn the second year, Uber aims to position itself as the number one transportation service in large cities: New York, Los Angeles, Chicago, Houston, Philadelphia.– Another potential issue is the regulations that some cities have over private transportation companies. This may include the requirement for drivers to carry extensive insurance or to obtain commercial license plates.– In addition, Uber will need to make changes to its relationship with its drivers. Driver satisfaction and creating a good company morale will make Uber an even stronger brand.– Lastly, Uber must gain more brand awareness to assist in gaining control of the market.TAXIS. REGULATIONS. RELATIONSHIPS. BRAND AWARENESS.– This strategy is based on the experience they give their customers and how much value the customer is getting versus how much they pay, when compared to the common cab company.– Uber will aim to position themselves as the primary transportation service in the minds of businesspeople and Millenials. – The quality of the Uber experience will stand out from the competitors with a more personal, on-demand, and efficient approach to the car service industry.POSITIONINGNumber one transportation service to use for short to medium distance trips.– Their marketing strategy will focus on positioning Uber as a better overall experience for the consumer.– The Uber experience will be more personable through use of the app which will enable users to select their driver, vehicle, and provide overall feedback regarding their experience.– The experience will be on-demand and efficient by allowing users to request a ride through the app as the user can provide information about their location, and in turn give the user information on the driver’s location. Through the app, the user is also alerted when the driver arrives as the designated location.PRODUCT STRATEGYUSER - FRIENDLY APP– The app increases efficiency and eliminates the hassle of hailing a cab.– Through the app, Uber is able to continue to provide consistent, high-quality service to their highly valued customers.PRICINGCONSISTENCY– Surge pricing is a highly debated topic amongst Uber’s customers.– In order to keep customers coming back and maintain customers' level of satisfaction, Uber will do away with their surge pricing tactics and maintain a consistent rate of transportation based on location. – Updates to the app will give the user an exact price before confirming the transaction.– Price, as always, will vary based on location due to different gas prices, trip mileage, and the quantity of drivers in any given area, but overall, rates will remain fairly consistent.PRICING10-MILE TRIP: CITY10-MILE TRIP: SUBURBS$10 - $15$21 - $28DISTRIBUTION STRATEGY– Uber will expand its operation in large cities, coinciding with the objectives for the next two years.– Having more Uber drivers will decrease wait times and be even more efficient for meeting customer needs.– Uber will expand the app’s reach to other platforms, including Windows and Android systems. – These strategies overall will reach a larger number of consumers, as well as increase efficiency and ease of use of the entire Uber system.MARKETING COMMUNICATIONS STRATEGY– Social media advertising, special promotions, Uber Kiosks, and word of mouth will make up the majority of Uber’s marketing communication strategy.– Ads strategically placed on Netflix, Hulu, Spotify, Pandora, and YouTube will also increase awareness to the users from the Millenial generation.MARKETING COMMUNICATIONS STRATEGYSOCIAL MEDIA– Through outlets such as Facebook, Instagram, and Twitter, Uber will reach consumers that are tech savvy with efficient advertising techniques.– Instagram, for example, will feature eye-catching photography that will link viewers to the app, and Twitter will promote through Tweets about limited time promotions photos, and general information.MARKETING COMMUNICATIONS STRATEGYAPP STORE ADVERTISING– Uber will specifically promote their app throughout Apple’s App store and Google Play. Various banner ads and in-app advertisements will help gain awareness among the target audience.MARKETING COMMUNICATIONS STRATEGYUBER KIOSKS– Still, to this day, many people are without smartphones. In order to better cater to this crowd, Uber will set up a series of kiosks in heavily populated areas of the largest cities.– Much like the app, the Uber Kiosks will be quick, easy-to-use and secure.

– Uber’s goal with the kiosks is to expand to an even larger target demographic.MARKETING COMMUNICATIONS STRATEGYREFER A FRIEND CAMPAIGN– This will be another tactic that encourages first time users to utilize the app in order to redeem their one free ride, and also pass one on to a friend.

– The first step in creating brand loyalty amongst consumers is to get them to try a product. Providing a free first ride will help Uber achieve this.MARKET RESEARCH– Certain aspects of the marketing strategy will require market research to determine if the aforementioned efforts are profitable in the areas that are focused on. – Uber will closely monitor its many social media handles, and gauge popularity based on views, comments, likes, re-tweets, and favorites.– A system in which Uber can monitor all kiosks to gather analytic date will be developed. This will ensure these new kiosks are beneficial to the consumer and profitable for the company and its current social status. Uber will also be able to keep the kiosks in proper working condition.– With the refer a friend promotional piece, first time users will gain a free ride and give a free ride to a friend. With this, Uber will be looking for quantitative data based on how many new customers are introduced based on the promotion, and how many users create accounts. – It’s important to determine how many people signed up only to take advantage of the free ride, and how many people went on to use Uber for future means of transportation. ACTION PROGRAMSJANUARY 2015 - JUNE 2015ACTION PROGRAMSJANUARYUber will partner with a supply company to start production of the Uber Kiosks for the selected cities.ACTION PROGRAMSFEBRUARYUber will launch a new social media campaign to increase brand awareness and also provide teaser information about the new kiosks. Other areas that will introduce the new campaign include Hulu, Netflix, Pandora, Spotify, and YouTube.ACTION PROGRAMSMARCHOn the date of availability, Uber will unveil the new kiosks and Refer a Friend program for the app. To start, kiosks will be launched in Los Angeles, New York City, Chicago, Houston, and Philadelphia. Kiosks will be placed in prominent locations such as bus stops, malls, universities, and other high traffic areas.ACTION PROGRAMSAPRILUber will continue with another social media campaign to drive customer traffic by highlighting the Uber Kiosks and Refer a Friend program.

ACTION PROGRAMSMAYUber will heavily promote their app in the App Store and Google Play with various banner ads and in-app advertisements. As Uber will be drawing in more traffic through social media at this point, Uber will have a more active presence on all social media platforms to maintain good PR, as they consistently respond to customer feedback.ACTION PROGRAMSJUNEOnce Uber reaches a goal of 5,000 redeemed Refer a Friend coupons, they will introduce a new offer of buy one ride, get another ride of the same mileage half off. This will begin to increase customer satisfaction. BUDGETCONTROLS– Uber will closely monitor driver satisfaction, customer satisfaction, brand awareness, and overall brand image.

– With this, Uber will be able to alter any features of the company in order to continually improve the business as a whole.

– This particular market is unpredictable, as are consumers' partialities, new technologies, and emerging competitors, so contingency plans are in place to counteract these changes.CONTROLS– Uber will continue to research technological advances that may arise in order to stay ahead of competitors.

– Closely monitoring social media platforms will enable Uber to stay on top of any major issues that may arise among its customers.

– In the event of a failure of any Uber Kiosks, regional IT specialists will be available to alleviate these issues through the fastest means possible and will be authorized to expend the funds necessary without consulting higher authority. DRIVER SATISFACTION + CUSTOMER SATISFACTION = SUCCESSTHANK YOUTOTAL PROFIT$5,780,000INCOMECOSTSPROFIT$5,780,000$1,900,000$7,680,000